Why the FCC delayed new privacy regulations for AT&T, Verizon, and Comcast
Loading...
It鈥檚 no secret that Google, Facebook, and other websites collect reams of user data. But they're not alone: Verizon, AT&T, and Comcast are also among the internet service providers that collect data on consumers.
Last November, the Federal Communications Commission moved to restrict the latter group, specifically targeting broadband firms鈥 ability to collect data with a set of .
But now, under a new chair, the agency is changing course. On Friday, FCC spokesman Mark Wigfield the implementation of those rules, a likely first step towards blocking them entirely.
The FCC rules would have required internet service providers (ISPs) 鈥 the companies whose broadband lines and wifi networks bring you the internet 鈥 to obtain user consent before using location data, health and financial information, and other personal details for advertising and internal marketing. , those requirements would have created an uneven playing field: Restricting firms such as聽AT&T, Comcast, and Verizon more than聽companies that simply use the internet, such as Facebook and Google.
鈥淸FCC] Chairman [Ajit] Pai believes that the best way to protect the online privacy of American consumers is through a comprehensive and uniform regulatory framework,鈥 Mr. Wigfield said in a statement.鈥 All actors in the online space should be subject to the same rules, and the federal government shouldn鈥檛 favor one set of companies over another.鈥
Last month, ISPs welcomed Mr. Pai鈥檚 decision to scrap a 鈥渘et neutrality鈥 rule that would have required them to treat all online content equally. By stepping back from Obama-era privacy rules, the Trump administration鈥檚 FCC has made another decision that鈥檚 likely to benefit service providers, but not websites or internet users. 聽
By collecting your personal data, internet companies can target you with ads geared toward your interests or location. This practice drives the business of some internet firms. In the fourth quarter of 2016, Google advertising revenue totaled nearly 鈥 the lion鈥檚 share of the $26 billion in revenue that Google鈥檚 parent company, Alphabet, reported.
During the same quarter, Verizon reported wireless equipment revenues of $5.4 billion, and 鈥溾 of $28.9 billion. The company鈥檚 financial statements don鈥檛 separate the latter into advertising, broadband and cellular subscription fees, and other revenue streams. But with total online ad revenue in coming years, it鈥檚 easy to see why ISPs would want to shore up their position in this market, and collect user data to do so.
For that reason, they took issue with the FCC鈥檚 privacy rules. , they described the rules as 鈥渢he imposition of significantly more costly and onerous restrictions on ISP use of online consumer data than all other online entities.鈥 In delaying these rules, President Trump鈥檚 FCC chair appeared to agree
The telecom industry claims to have public opinion on its side. Upon filing its petition, NCTA - The Internet and Television Association 鈥渄ata submitted to the FCC shows that 94% of internet users believe all companies collecting or using information online should be governed by the same set of rules.鈥
But US internet users may prefer those rules to be more stringent, not less. Over the past year, the rise of 鈥渟mart devices鈥 like Amazon鈥檚 Alexa and the My Friend Cayla doll have sparked concerns 鈥 and regulatory challenges 鈥 from consumer-advocacy groups.
Meanwhile, internet users in Europe under a recent data reform, including consent requirements for processing of personal data and a 鈥渞ight to be forgotten鈥 which allows individuals to demand that old personal data be deleted.
Unlike US privacy laws, don鈥檛 distinguish between firms鈥 business models. Instead, they focus on how they handle internet user data, administering the activities of 鈥渃ontrollers,鈥 鈥減rocessors,鈥 and 鈥渞ecipients.鈥
The European model could mean a more even playing field for US telecom and tech companies. It also suggests a possible alternative that US privacy advocates may want to consider now that the Obama administration FCC regulations have been derailed.
Former FCC Chairman Tom Wheeler, who authored the privacy rules, made clear that he鈥檚 still concerned about Internet users鈥 privacy. "The fact of the matter is it's the consumer's information," . "It's not the network's information."